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US, Russia Deal Paves Way For US Beef Exports

11/20/2006 11:21AM

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WASHINGTON (Dow Jones)--The U.S. and Russia this weekend signed a deal that paves the way for the U.S. to once again begin shipping beef to Russia after a nearly three-year ban, according to U.S. government and industry officials.

Russia, once the fifth-largest foreign market for U.S. beef, agreed to resume imports after it is allowed to audit "all slaughter facilities desiring to export beef to Russia in an expeditious and timely manner so that trade resumes quickly."

A U.S. Department of Agriculture official said Monday the government is already preparing to receive Russian auditors so a list of eligible U.S. exporters can be drawn up.

Russia banned U.S. beef in December, 2003, after mad-cow disease, or bovine spongiform encephalopathy, was discovered here.

Before the ban Russia was the largest foreign buyer of beef livers from the U.S. and it was a growing market for "high-end muscle meats," according to the U.S. Meat Export Federation.

Russia, as part of a larger agreement to secure U.S. approval for Russia's accession into the World Trade Organization, agreed to buy boneless, bone-in and beef by-products so long as the product comes from cattle under 30 months old.

In the agreement Russia agreed to tolerance levels for bone fragments in U.S. beef shipments. Bone fragments have been the cause of disruptions to U.S. beef exports to other countries, but will not be an issue with Russia, the U.S. Trade Representative said.

Source: Bill Tomson; Dow Jones Newswires; 202-646-0088; bill.tomson@dowjones.com

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